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OTHERS NESTCON BERHAD ("NESTCON" OR "THE COMPANY") - LETTER OF AWARD FROM SINO NATURAL RESOURCES MALAYSIA SDN. BHD. TO NESTCON INFRA SDN. BHD., A WHOLLY-OWNED SUBSIDIARY OF THE COMPANY

NESTCON BERHAD

Type Announcement
Subject OTHERS
Description
NESTCON BERHAD ("NESTCON" OR "THE COMPANY")
- LETTER OF AWARD FROM SINO NATURAL RESOURCES MALAYSIA SDN. BHD. TO NESTCON INFRA SDN. BHD., A WHOLLY-OWNED SUBSIDIARY OF THE COMPANY
1. INTRODUCTION

The Board of Directors of Nestcon (“the Board”) wishes to announce that Nestcon Infra Sdn. Bhd. (“Nestcon Infra”), a wholly-owned subsidiary of the Company, had on 13 October 2022 accepted the letter of award dated 13 October 2022 (“LOA”) from Sino Natural Resources Malaysia Sdn. Bhd. (“SINO”) in respect of the appointment of Nestcon Infra as Contractor to provide site clearance, earthwork and ancillary works on CBS 2, Block 3, Sungai Bakau, Balingian, Mukah Division, Sarawak, Malaysia (“Project”).

2. INFORMATION ON NESTCON INFRA

Nestcon Infra was incorporated in Malaysia as a private company limited by shares having its registered address at No. 7-1, Jalan 109F, Plaza Danau 2, Taman Danau Desa, 58100 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur.

The nature of business of Nestcon Infra is principally involved in construction works.

3. INFORMATION ON SINO 

SINO was incorporated in Malaysia as a private company limited by shares and having its business address at Lot 34, Block 53, Bedanga Road, 96400 Mukah, Sarawak.

The nature of business of SINO is principally involved in construction of utility projects N.E.C..

4. DETAILS OF THE LOA

(a) Nestcon Infra will be appointed by SINO as the Contractor to undertake the Project.

(b) The provisional contract sum for the Project is RM129,600,000.00 (Ringgit Malaysia One Hundred Twenty-Nine Million and Six Hundred Thousand) only.

(c) The LOA shall be in force for an initial term of twenty-four (24) months effective from 13 October 2022 to 12 October 2024 (“Initial Term”), with an option to extend for an additional period of 24 months upon written notice not later than thirty (30) days prior to the expiration of the Initial Term.

(d) Nestcon Infra shall carry the Project in accordance with the specifications and requirements set out in the LOA.

(e) SINO and Nestcon Infra shall enter into a formal contract along the necessary supporting documents (“Contract”) within twenty-one (21) days from the acknowledgement of the LOA. The LOA is a binding agreement between SINO and Nestcon Infra before the execution of the Contract and shall remain in full force and effect and shall be read and construed and be enforceable.

5. FINANCIAL EFFECTS 

The acceptance of the LOA by Nestcon Infra to undertake the Project is expected to contribute positively to the net assets per share, earnings per share and gearing of the Company for the financial year ending 31 December 2022 and throughout the duration of the Project.

6. RISK FACTORS

The Company does not foresee any exceptional risk other than the normal operational risks associated with the LOA and/or Project. Nevertheless, the Company will take the necessary steps to mitigate the risks as and when they occur.

7. APPROVAL REQUIRED

The acceptance of the LOA is not subject to the approval from the Company’s shareholders’ and/or any regulatory authorities.

8. DIRECTORS’ AND MAJOR SHAREHOLDERS’ AND/OR PERSONS CONNECTED WITH A DIRECTOR OR MAJOR SHAREHOLDER’S INTERESTS 

None of the Directors and/or major shareholders of Nestcon or persons connected with them has any interests, direct or indirect, in the LOA and/or Project.

9. STATEMENT BY THE BOARD OF DIRECTORS

The Board, after having considered all aspects of the LOA and the Project, is of the opinion that the LOA and the Project are within the ordinary course of business of Nestcon and the acceptance of the LOA is in the best interest of the Company.

This announcement is dated 13 October 2022.





Announcement Info

Company Name NESTCON BERHAD
Stock Name NESTCON
Date Announced 13 Oct 2022
Category General Announcement for PLC
Reference Number GA1-13102022-00061




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